Hollywood writer-director Carl Erik Rinsch was arrested on charges of swindling $11 million from Netflix for a sci-fi show that he never aired. Instead of using the money to complete the show, he invested it in cryptocurrency and made several extravagant purchases, such as a fleet of Rolls-Royces and a Ferrari. He has been charged with wire fraud and money laundering for his alleged scheme to defraud the streaming giant. Netflix initially paid $44 million for an unfinished show called “White Horse” from Rinsch and later gave him an additional $11 million to complete the project.
Rinsch transferred the extra $11 million to a personal brokerage account, where he made poor investments that resulted in half of the money being lost in just two months. He then put the remaining funds into the cryptocurrency market, which turned profitable. After earning from his investments in cryptocurrency, he transferred the money to a personal bank account. Rinsch then went on a spending spree, using about $10 million for personal expenses and luxury items, including credit card bills, lawyers to sue Netflix, furniture and antiques, five Rolls-Royces, one Ferrari, watches, and clothes.
The 47-year-old filmmaker was arrested in West Hollywood and appeared in a federal courtroom in Los Angeles wearing a turtleneck sweater and jeans with shackles on his arms and legs. During the hearing, he did not enter a plea and only spoke to answer the judge’s questions. Rinsch admitted to not reading the indictment fully but said he understood the charges against him. US Magistrate Judge Pedro V. Castillo ordered his release after posting a $100,000 bond and ensured his appearance in a New York court where the indictment was filed. His attorney, Annie Carney, declined to comment on the case outside of court.
Rinsch’s upcoming court date in New York had not yet been scheduled. Netflix chose not to comment on the situation. The allegations against Rinsch are financial in nature, according to his attorney. Rinsch’s personal spending behaviors, coupled with his investments in cryptocurrency, led to the charges of wire fraud and money laundering. The case against Rinsch highlights how creative professionals in the entertainment industry can be susceptible to temptations and poor financial decisions. It serves as a reminder to filmmakers, writers, and directors to act responsibly and ethically when handling financial matters.
